A Direct Subsidized Loan is a type of federal student loans (made through the William D. Ford Federal Direct Loan Program) where a borrower isn't generally responsible for paying interest while in an in-school, grace*, or deferment period.
Final answer: The true statement about a subsidized student loan is that interest is not charged until after graduation, making higher education more affordable.
Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.
The correct answer to your question is: c.) The interest on the loan is paid by the federal government if the student is enrolled in school for more than half-time.
Answer and Explanation:
Buying bonds is one example of direct financing, as investors can pick up bonds without taking the help of brokerage services. Thus, Microsoft bonds fall into this category.
The major difference between subsidized and unsubsidized student loans has to do with interest. Direct Subsidized Loans: You won't be charged interest while you're enrolled in school or during your six-month grace period.
plural subsidies. : a grant or gift especially of money. especially : a grant by a government to a private person or company or to another government to assist an undertaking thought helpful to the public.
Subsidized Loan. A federal student loan for which in some cases, a borrower is not responsible for paying the interest while in an in-school, grace*, or deferment period. * Interest will be charged during your grace period, if your loan is first disbursed July 1, 2012 through June 30, 2014.
Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.
If you take out a Direct Subsidized Loan, you will not be charged interest while you're in school, during your grace period, or during other periods of deferment. If you take out a Direct Unsubsidized Loan, interest will accrue on your loan as soon as it is disbursed, even while you are in school.
If you qualify for a subsidized loan, the government pays your loan interest while you're in school at least half-time and continues to pay it during a six-month grace period after you leave school. The government will also pay your loan during a period of deferment.
The PSLF Program forgives the remaining balance on your Direct Loans after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.
Both Direct Subsidized Loans and Direct Unsubsidized Loans are offered to students regardless of their credit history and neither will result in a hard inquiry. A Direct PLUS Loan, however, does require a credit check, so if you're considering one, your credit scores may take a slight hit.
Essentially, suppliers benefit to the same extent as if the goods and services were selling at higher prices, and are able to produce more. Meanwhile, consumers get to enjoy subsidized products for relatively cheaper prices. The government often helps suppliers through tax credits or reimbursements.
The accurate statement about subsidies is that they are a popular tool among legislators. While they can be spread to meet various demands, their distribution often favors specific sectors or larger operations rather than small family farmers. So the correct option is (c) Subsidies are a popular tool among legislators.
Some advantages of subsidies include inflation control and moderation of supply and demand, while disadvantages include a potential increase in taxes on citizens in subsidizing countries.
With a Direct Subsidized Loan, the federal government will pay the loan's interest on your behalf while you're in school at least half-time. They'll continue to do that during a six-month grace period after you've left school, and anytime you're on an approved deferment.
Drawbacks of Subsidized Loans
Subsidized loans can be really helpful if you're eligible, but not all students are. Plus, the amount you can borrow is limited per academic year. So, even if you qualify for one, a subsidized loan might not get you all the money you need for college.
If your loans are subsidized, you are not responsible for paying the interest that accrues while you're in school. If your loans are unsubsidized, you're responsible for all the interest that accrues, even while you're in school. Learn about the differences between subsidized and unsubsidized loans.
Direct Financing
Disadvantages: This method is much more time-consuming, and it also requires more research on your end so you know exactly what type of loan you need.
Direct payment is a method of transferring funds directly from one account to another without the need for intermediaries. This process often involves electronic transactions, such as bank transfers or direct deposits, where payments are made directly from a payer's account to a payee's account.
Direct compensation refers to any monetary payments, rewards, and benefits an employee receives for their work. Direct compensation includes an employee's regular wages or salary and other payments related to their job role, experience, or performance. These payments could include bonuses, commissions, and overtime.